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Provo, Utah's Response To Google Fiber: +1

Update: Last night, April 23, Provo’s City Council approved the Google Fiber purchase of the iProvo network in a unanimous vote. Google Fiber is coming to Provo, with first implementations in place by the end of 2013.

If reactions to the first public meeting following the Provo and GoogleGoogle announcement that Provo will be the third U.S. city to receive Google Fiber are an indication, the proposal will have no trouble achieving City Council approval on April 23.

In case you’re late to the party, Google and Provo City announced last Wednesday that Provo will be the third major U.S. city to receive superfast 1 gigabit speed (translation: 100x faster than the speed available to average U.S. residents today.)

Google will invest a reported $18M in the endeavor that will update and replace the current iProvo network the city has spent $39M to build. Regional broadband pundit Jesse Harris notes that when enacted, the move will likely lead to an explosion of self-hosted services, home-based businesses and new startups in a city that is already known for being one of the nation’s top locations for starting a business.

What else does this agreement mean? In Thursday’s meeting, Mayor John Curtis and Google Fiber Head of Community Affairs Matt Dunne noted that while Provo is the third city announced in the Google Fiber network, Provo will actually be the first city connected due to the high-speed fiber already in the ground. At the meeting, Curtis and Dunne estimated the first upgraded connections should be completed by the end of the year.

Provo City Mayor John Curtis

“We are not in Provo by accident,” Dunne said. “Provo understands that connectivity matters for creativity and innovation. It is an area based in technology, and a city that is willing to work with us. They have been willing to think outside of the box and move at Google speeds.”Added Curtis: “Provo will be the first universally connected city. What does this mean to have everyone connected? For schools, teachers won’t have to worry whether all their students have Internet connections necessary to complete homework assignments. For economic development, entrepreneurs can get gigabit speed. The property value in Provo just went up.”

While representatives for the City and Google did not provide numbers, Utah Valley Chamber of Commerce President Val Hale has provided an estimated breakdown as follows: “There are approximately 35,000 homes in Provo and only 9,000 are currently connected. From the city’s experience, connecting each new home costs Veracity Networks (the current iProvo provider) between $600 and $1,000 dollars. To connect an additional 26,000 homes and structures at an approximate cost of $700 per connection would equate to an $18 million cost.”

“That is a considerable investment in the network, and one the city would likely never have had the ability to make,” Hale added. “Also, that estimate is not considering the unknown cost it would take to upgrade all of the equipment on the current network that is too out of date to allow the network to reach Gigabit speed. This would be another impossible feat for a city-owned network to reach.”

Utah Valley Chamber President Val Hale

“Secondly, the savings to residents who opt for Google Fiber’s free Internet service is powerful. If 35,000 residential customers could save some $30 a month (an average of current monthly plans available) they’d achieve a total of $360 per home in annual savings. Even if only 20,000 of our households took advantage of the free service, the numbers add up quickly. Multiply that $360 by 20,000 and again by seven years – the minimal amount of time Google Fiber intends to offer free Internet service – and the network will have provided $50 million of real value for the people of Provo.” The additional value to businesses and entrepreneurs of the super fast connectivity, of course, will likely produce revenue and benefit that is many times greater still.

What’s Not To Love?

In a private interview, Dixon Holmes, Deputy Mayor of Economic Development for Provo offered additional insights for this story: “Google Fiber will benefit Provo-based businesses, including start-ups and entrpereneurs, because if a business has applications that require gigabit service but don’t have any users connected with that speed, then the application isn’t valuable. So with Google Fiber, business can come to Provo and have a robust fiber network that people can actually use.”

“Medical imaging is an example of an industry that will benefit from Google Fiber. A doctor can instantly share an MRI, a huge file, with his patient at home. The gaming industry and video production will also greatly benefit from Google Fiber, as would cloud-based editing. Gigabit service will allow businesses to offer applications that everyone can tie into.”

“I believe Google wants to see what entrepreneurs can do with that speed,” he said. Another real benefit for residents of Provo relates to the city’s current bond, Holmes explained. The City paid $39 million about 11 years ago for iProvo. Google is buying it for $1 because the technology is 10 years old. While the city is obtaining a revenue stream of $5.35 per month per resident to retire the bond’s debt, Provo is now relieved of the unfunded responsibility to continue to upgrade the system, thanks to Google’s willingness to take that responsibility on.

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Actually, while Google gets to buy the physical network; the citizens of Provo will still be paying an estimated 360.00 per household towards the bond in property taxes; while Google will own the network OUTRIGHT.

This ‘great deal’ was all done without any knowledge of the public; who own the installedf fiber network.

This isnt just bad for Provo, it makes Utah look stupid and ignorant and an easy mark for those wanting to profit off tax payers.

Maybe Utahn’s deserve it for spreading rumor this was our sitting Presidents plan with the poeples property but still it just aint right. I, myself, would love to saee the FCC investigate this as well as the FTC.

360 per household? Where do you get your information? They only pay 5.35 per household you idiot. The previous people that tried to make the network got screwed over by quest. This guys has it all wrong

Cruxi, $5.35 per month, added to utility bills, is the information we confirmed with Provo City Manager Dixon Holmes, to pay back the bond for the remaining debt from iProvo. We worked to present all sides of the story in the article, but from where I’m sitting, that $39M investment was money well spent, in spite of the bond. That infrastructure (among other things) has left Provo extremely well poised for this deal.These residents will be getting ultra high speed internet for home and business at extremely low prices (at entry level even free) for a minimum of the next 7 years. Yes, it impinges on the equilibrium of alternative providers, which is the one side effect that would give me most reason for pause. But it’s enough to make me wish I were living and working in Provo. Thanks for your note. Regards, Cheryl

No, I did not attend the meeting. While I have a VERY stong view based in fact on this; my voice would not only be useless to the process it would make the meeting invalid if I were to attempt to be a working part of it.

I dont live in Provo. Im not a taxpayer in Provo. I have ZERO merit inteffering at their OFFICIAL public meetings.

Double Aught – I am a resident of Utah County, but not of Provo. I did not attend last night’s Council meeting, but I have attended multiple of Provo’s Council meetings addressing the iProvo network in the past and can verify that I heard ample input on the issue during those meetings from all sides. Several of the meetings ran until midnight or beyond, in fact, in the city’s efforts to ensure all opinions were heard.